Using Smoothed MACD Histogram Momentum to Anticipate Crossovers
Summary
This note describes a proposed way to anticipate MACD crossovers by measuring momentum in the MACD histogram. It identifies the indicator as a 10-period momentum of the histogram, smoothed over 3 periods, and attributes the general idea to Tom Aspray while acknowledging uncertainty about whether the displayed version matches his original formulation.
The cited discussion says that MACD signals can lag on weekly data and describes testing different exponential moving average inputs. It gives a silver-market example where a 10, 20, 9 MACD combination reportedly performed better than the default settings, and says histogram momentum produced good test results. No test period, methodology, benchmark, or risk measures are provided, so these historical claims are not enough to establish robust performance or generalize the indicator across markets.
Key ideas
- The proposed indicator applies 10-period momentum to the MACD histogram and smooths it over 3 periods.
- Its purpose is to anticipate MACD crossovers that may arrive late, particularly on weekly charts.
- The cited account reports that changing MACD moving average inputs altered silver results.
- The document provides limited testing detail, so its performance claims need independent validation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.